Monetary Theory Exam 1 QUESTION
AND ANSWERS LATEST UPDATES 2023
A GRADE.
Markets in which funds are transferred from those who have excess funds available to
those who have a shortage of funds available are called ________ _______. -
ANSWER-financial markets
A key factor in producing high economic growth is ______-______ ________ ________.
- ANSWER-well-functioning financial markets
The bond markets are important because they are the markets where _______
_______ _____ _______. - ANSWER-interest rates are determined
The prices paid for borrowing funds (usually expressed as a percentage of the rental of
$100 per year) is commonly referred to as the ________ ______. - ANSWER-interest
rate
Everything else held constant, a decline in the interest rates will cause spending on
housing to _______. - ANSWER-rise
An increase in interest rates might _______ saving because more can be earned in
interest income. - ANSWER-encourage
When stock prices fall an individuals wealth may ________ and her willingness to
spend may ________. - ANSWER-decrease, decrease
When I purchase a corporate _______, I am lending the corporation some funds for a
specific time. When a purchase I a corporation's ________, I became an owner in the
corporation. - ANSWER-bond, stock
______ provide a channel for linking those who want to save with those who want to
invest. - ANSWER-Banks
_______ is defined as anything that is generally accepted in payment for goods or
services or in the repayment of a debt. - ANSWER-Money
The upward and downward movement of aggregate output produced in the economy is
referred to as the ________ ________. - ANSWER-business cycle
During a recession, output declines result in _________ unemployment in the economy.
- ANSWER-higher
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, Prior to almost all recession in 1950, there has been a drop in ________ _______ __
_______ _______. - ANSWER-growth rate of money stock
_________ _________ relates the quantity of money and monetary policy to changes in
aggregate economic activity and inflation. - ANSWER-Monetary theory
A continuing increase in the growth of the money supply is likely followed by an ______
_____ ______ ______ (________). - ANSWER-increase in price level (inflation)
Complete Milton Friedman's famous statement, "Inflation is always and everywhere a
__________ phenomenon." - ANSWER-monetary
A budget ________ occurs when government expenditures exceed tax revenues for a
particular time period. - ANSWER-deficit
The most comprehensive measure of aggregate output is _______ _______ ________.
- ANSWER-gross domestic product (GDP)
Well-functioning financial markets .............. - ANSWER-allow the economy to operate
more efficiently.
Securities are ________ for the person who buys them, but are ________ for the
individual or firm that issues them. - ANSWER-assets, liabilities
With _________ finance, borrowers obtain funds from lenders by selling them securities
in the financial markets. - ANSWER-direct
_________ _________: borrowers borrow funds directly from financial markets by
selling securities - ANSWER-direct finance
_________ ________: a financial intermediary borrows funds from lender-savers and
used these finds to make loans to borrower-spenders - ANSWER-indirect finance
Collateral is ___ _______ the lender receives if the borrower does not pay back the
loan. - ANSWER-an asset
In the bond market, the bond demanders are the _________ and the bond suppliers are
the __________. - ANSWER-lenders, borrowers
Federal funds are ............ - ANSWER-loans made by banks to each other
A person's house is apart of her _________. - ANSWER-wealth
Risk premiums on corporate tend to _________ during expansions and ________
during recessions, everything else held constant. - ANSWER-decrease, increase
This study source was downloaded by 100000868537585 from CourseHero.com on 07-10-2023 21:56:39 GMT -05:00
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AND ANSWERS LATEST UPDATES 2023
A GRADE.
Markets in which funds are transferred from those who have excess funds available to
those who have a shortage of funds available are called ________ _______. -
ANSWER-financial markets
A key factor in producing high economic growth is ______-______ ________ ________.
- ANSWER-well-functioning financial markets
The bond markets are important because they are the markets where _______
_______ _____ _______. - ANSWER-interest rates are determined
The prices paid for borrowing funds (usually expressed as a percentage of the rental of
$100 per year) is commonly referred to as the ________ ______. - ANSWER-interest
rate
Everything else held constant, a decline in the interest rates will cause spending on
housing to _______. - ANSWER-rise
An increase in interest rates might _______ saving because more can be earned in
interest income. - ANSWER-encourage
When stock prices fall an individuals wealth may ________ and her willingness to
spend may ________. - ANSWER-decrease, decrease
When I purchase a corporate _______, I am lending the corporation some funds for a
specific time. When a purchase I a corporation's ________, I became an owner in the
corporation. - ANSWER-bond, stock
______ provide a channel for linking those who want to save with those who want to
invest. - ANSWER-Banks
_______ is defined as anything that is generally accepted in payment for goods or
services or in the repayment of a debt. - ANSWER-Money
The upward and downward movement of aggregate output produced in the economy is
referred to as the ________ ________. - ANSWER-business cycle
During a recession, output declines result in _________ unemployment in the economy.
- ANSWER-higher
This study source was downloaded by 100000868537585 from CourseHero.com on 07-10-2023 21:56:39 GMT -05:00
https://www.coursehero.com/file/207479977/Monetary-Theory-Exam-1-QUESTION-AND-ANSWERS-LATEST-UPDATES-2023-A-GRADEdocx/
, Prior to almost all recession in 1950, there has been a drop in ________ _______ __
_______ _______. - ANSWER-growth rate of money stock
_________ _________ relates the quantity of money and monetary policy to changes in
aggregate economic activity and inflation. - ANSWER-Monetary theory
A continuing increase in the growth of the money supply is likely followed by an ______
_____ ______ ______ (________). - ANSWER-increase in price level (inflation)
Complete Milton Friedman's famous statement, "Inflation is always and everywhere a
__________ phenomenon." - ANSWER-monetary
A budget ________ occurs when government expenditures exceed tax revenues for a
particular time period. - ANSWER-deficit
The most comprehensive measure of aggregate output is _______ _______ ________.
- ANSWER-gross domestic product (GDP)
Well-functioning financial markets .............. - ANSWER-allow the economy to operate
more efficiently.
Securities are ________ for the person who buys them, but are ________ for the
individual or firm that issues them. - ANSWER-assets, liabilities
With _________ finance, borrowers obtain funds from lenders by selling them securities
in the financial markets. - ANSWER-direct
_________ _________: borrowers borrow funds directly from financial markets by
selling securities - ANSWER-direct finance
_________ ________: a financial intermediary borrows funds from lender-savers and
used these finds to make loans to borrower-spenders - ANSWER-indirect finance
Collateral is ___ _______ the lender receives if the borrower does not pay back the
loan. - ANSWER-an asset
In the bond market, the bond demanders are the _________ and the bond suppliers are
the __________. - ANSWER-lenders, borrowers
Federal funds are ............ - ANSWER-loans made by banks to each other
A person's house is apart of her _________. - ANSWER-wealth
Risk premiums on corporate tend to _________ during expansions and ________
during recessions, everything else held constant. - ANSWER-decrease, increase
This study source was downloaded by 100000868537585 from CourseHero.com on 07-10-2023 21:56:39 GMT -05:00
https://www.coursehero.com/file/207479977/Monetary-Theory-Exam-1-QUESTION-AND-ANSWERS-LATEST-UPDATES-2023-A-GRADEdocx/
